Rumors of the demise of 'buy & hold' investing are greatly exaggerated, to say the least.
Purveyors of market timing would like us to believe that this investment strategy is no longer relevant to the current market environment.
Stocks have struggled with various challenges, ranging from elevated inflation and rising interest rates to geopolitical uncertainty in Europe and Asia. Even signs of an end to the Fed's tightening cycle have not been able to lift sentiment, with many in the market preoccupied with economic recession risks.
With this general sentiment negativity leaving most stock market boats adrift, investors are at risk of reaching the wrong conclusions from their recent failures and discarding long-held investing beliefs, including the virtues of 'buy & hold' investing strategies, as no longer relevant.
It is important to remember that long-term investing, particularly a 'buy & hold' approach, remains as relevant today as ever. But to adequately benefit from this time-tested and proven strategy, investors need to guard against three significant pitfalls.
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